Blue Star strengthens leadership as Q2 revenue jumps 21%, margins tighten

Blue Star Ltd has appointed Nithianand S, Group President, Supply Chain & Procurement, and Senthil Thangam, President, Air Conditioning & Refrigeration Solutions Group, as senior management personnel, with effect from November 1, 2026, as the air-conditioning and refrigeration major reported a 21% year-on-year rise in consolidated revenue for the September quarter, even as profitability remained under pressure from rising material costs.

The appointments, approved by the company's board on October 29 following recommendations from the Nomination and Remuneration Committee, come as Blue Star focuses on improving profitability through procurement savings, product cost optimisation and operational efficiencies.

Nithianand joined Blue Star in March 2021 and has over two decades of experience, including stints at Samsung Electronics and Whirlpool India. He played a role in the growth and profitability improvement of the company's room air-conditioner business through procurement savings, vendor consolidation, alternate suppliers, cost sheets and e-procurement.


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Thangam joined Blue Star in 1995 as a graduate engineer trainee and has over 30 years of experience across sales, marketing and product management in commercial air-conditioning products. He was associated with the launch of inverter VRF, inverter ducted machines, configured screw chillers, side-discharge VRF and centrifugal chillers.

The management appointments come against the backdrop of rising input costs and limited ability to pass on the increases to customers, which have weighed on margins across Blue Star's businesses.

Revenue rises 21%, operating profit grows 10.5%

Blue Star reported consolidated revenue from operations of Rs 2,930.95 crore in Q2FY27, up 21% from Rs 2,422.37 crore in the year-ago quarter. Operating profit, or EBITDA excluding other income, rose 10.5% to Rs 202.58 crore, while its share of revenue declined to 6.9% from 7.6% a year earlier.

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Net profit increased 25.4% to Rs 123.91 crore from Rs 98.78 crore in Q2FY26. The quarter's profit included an exceptional gain of Rs 23.02 crore from the sale of the company's MedTech business.

Profit before tax, before exceptional items and share of profit or loss from joint ventures, grew marginally to Rs 133.61 crore from Rs 133.16 crore.

For the first half of FY27, revenue rose 16.7% to Rs 6,308.87 crore, while operating profit declined to Rs 377.53 crore from Rs 383.41 crore in the corresponding period last year. Net profit for the half year stood at Rs 226.42 crore, compared with Rs 219.60 crore in H1FY26.

The company recognised exceptional income of Rs 32.19 crore during the half year, comprising Rs 23.02 crore from the MedTech business sale and Rs 9.17 crore from the sale of property.

Room AC demand lifts revenue, but margins remain under pressure

Blue Star said an extended summer season and delayed monsoon supported robust demand for room air-conditioners during the quarter.

Revenue from the Unitary Products segment, comprising room ACs and commercial refrigeration, grew 29.4% to Rs 897.66 crore. However, the segment's result fell to Rs 20.74 crore, or 2.3% of revenue, from Rs 42.72 crore, or 6.2%, in the year-ago quarter.

The company said periodic price increases were insufficient to fully offset material cost escalation. It is rationalising its product portfolio through differentiated, cost-optimised models to improve margins. Commercial refrigeration is also showing signs of demand revival, though margins remain under pressure.

The Electro-Mechanical Projects, Commercial Air Conditioning Systems, Service and International Business segment reported revenue growth of 16.3% to Rs 1,935.99 crore. Its segment result declined to Rs 133.15 crore from Rs 147.14 crore a year ago.

In the electro-mechanical projects business, order inflows were primarily driven by data centres, while enquiries from the factory segment remained strong. Billing growth was subdued due to project execution delays.

The Professional Electronics and Industrial Systems segment reported a 51.2% increase in revenue to Rs 97.30 crore. Its segment result rose to Rs 23.10 crore from Rs 6.17 crore, partly aided by the write-back of warranty provisions following the MedTech business divestment.

Blue Star sees growth momentum continuing in H2

Blue Star's carried-forward order book stood at Rs 7,229.22 crore as of September 30, 2026, marginally higher than Rs 7,120.44 crore a year earlier.

The company ended the quarter with a net cash position of Rs 289.43 crore, compared with net borrowings of Rs 417.06 crore as of September 30, 2025.

Chairman and managing director Vir S Advani said the company continued to see strong room AC demand through the festive season and expected a healthy pipeline of data centre MEP projects to translate into significant order inflows in the coming months.

He also pointed to a revival in demand across commercial air-conditioning and commercial refrigeration businesses.

However, Advani flagged a deficient monsoon, its potential impact on agricultural incomes and higher interest rates as risks to near-term demand. He said the conclusion of the US trade deal and resolution of the West Asia crisis could provide growth tailwinds.

The company said it remained confident of sustaining revenue growth momentum in H2FY27, with a focus on strengthening profitability through calibrated price revisions, faster product cost optimisation and improved operational efficiencies.